Los Angeles, USA
Zach Avery, an actor who has appeared in films such as “Fury”, “The White Crow” or “Under the Same Skin”, has been arrested in Los Angeles after uncovering his involvement in a Ponzi scheme that it defrauded $ 227 million to various investors through fictitious deals with HBO, Netflix and other platforms.
The 34-year-old performer was accused of sending fake emails posing as HBO and Netflix executives around non-existent film distribution agreements. In an affidavit filed in Los Angeles federal court, FBI agent John Verrastro uncovered Avery’s plan, the intent was to persuade investors to invest huge sums of money in his distribution company, 1inMM Capital LLC.
Horwitz sent investors an annual report highlighting a catalog of 52 films his company allegedly distributed in Africa, Australia, New Zealand and South America, according to Verrastro’s statement. This list included titles such as the 2012 horror film The Lords of Salem or Kickboxer, a 1989 production starring Jean-Claude Van Damme.
Avery deceived investors by claiming he had “strategic partnerships” with HBO, Netflix and other platforms for licensing overseas distribution rights, and promised them a return of profits of up to 40% in one year.
But according to the FBI, the defendant had no agreement and diverted much of the money for his personal benefit. He used some of the funds to buy a house in Beverlywood in 2018, a home that is now for sale for $ 6.5 million. The plaintiff has been charged with electronic fraud and could face up to 20 years in prison if convicted.
Since December 2019, Avery’s company has defaulted on more than 160 payments to its investors. Its largest investor, JJMT Capital, LLC, owes more than $ 160 million in capital and about $ 59 million in profits. In all, Avery owes investors about $ 227 million.
Federal prosecutor Alexander Schwab urged Judge Jean P. Rosenbluth, who is leading the case, to detain Avery until trial for risk of absconding. “The odds that the defendant has some of that money hidden are pretty high,” Schwab said. Despite this concern, the magistrate has set her bail at $ 1 million, but she will remain in police custody until that bail is approved. For now, the artist will have to wait until May 13, the date on which charges will be read.